Slobodan Drvenica
Windsor Brokers
GBP/USD
Cable continues to benefit from rising expectations for more dovish Fed after US labor data on Friday added to signals that the central bank would further ease the pace of policy tightening, increasing the possibility for 25 basis points hike in the next meeting and lowering expectations for 0.5% hike.
Sterling rallied 1.6% on Friday, after US labor data added to a risk sentiment, making the biggest daily rally since Nov 10, with formation of bullish engulfing pattern on a daily chart, generating initial bullish signal.
Monday’s extension hit the highest since Dec 21 and broke through Fibo barrier at 1.2144 (50% retracement of 1.2446/1.1841), signaling formation of a higher low at 1.1841, after the pullback from Dec 14 high (1.2446) was contained by rising thick daily cloud.
Improving daily studies (momentum is about to break into positive territory and moving averages returned to bullish setup) underpin near-term action, which looks for a daily close above broken Fibo level (1.2144) to keep bulls intact for further retracement of 1.2446/1.1814 pullback.
Next pivots lay at 1.2215 (Fibo 61.8%) and 1.2304 (Fibo 76.4%) violation of which would expose key barrier at 1.2446.
Extended dips should find ground above 1.2100 zone (last week’s multiple highs) to maintain bullish bias.
Res: 1.2174; 1.2215; 1.2241; 1.2304.
Sup: 1.2100; 1.2072; 1.2044; 1.2012.
Interested in GBP/USD technicals? Check out the key levels
The information contained in this document was obtained from sources believed to be reliable, but its accuracy or completeness cannot be guaranteed. Any opinions expressed herein are in good faith, but are subject to change without notice. No liability accepted whatsoever for any direct or consequential loss arising from the use of this document.
Recommended Content
Editors’ Picks
EUR/USD breaks below 1.1000 on stellar NFP
The buying bias in the Greenback gathers extra pace on Friday after the US economy created far more jobs than initially estimated in September, dragging EUR/USD to the area of new lows near 1.0950.
GBP/USD breaches 1.3100 after encouraging US Payrolls
The continuation of the uptrend in the US Dollar motivates GBP/USD to accelerates its losses and breaches 1.3100 the figure in the wake of the release of US NFP.
Gold rebounds from daily lows and flirts with $2,670
Following a post-NFP dip to the $2,640 region, Gold prices now embarks on an acceptable rebound and retest the area of $2,670 per ounce troy despite the marked advance in the US Dollar and rising US yields across the board.
US Payrolls surge in September, as 50bp rate cut ruled out
US payrolls data surprised on the upside in September, rising by 254k, smashing expectations of a 150k rise. The unemployment rate fell to 4.1% from 4.2%, average hourly earnings increased to a 4% YoY rate and there was a 72k upwards revision to the previous two months’ payrolls numbers.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.